The recent lapse of the exclusivity clause in the ExxonMobil talks has enabled InterOil to be open to other offers, and well-placed sources said Shell has submitted a new offer, and possibly another party also.

It could not be confirmed if Shell’s new offer is in direct competition with ExxonMobil’s, or is a separate play for other InterOil resources.

InterOil confirmed the ExxonMobil talks are continuing, though a spokesperson refused to be drawn on the Shell offer, saying only that the company would not be making public comments about any of its negotiations.

A Shell spokesperson did not confirm or deny a move in PNG, saying: “Shell continuously reviews our global upstream portfolio in line with our strategic approach to capital allocation.

“In light of our strategy, we may talk with third parties from time to time. Any conversations are confidential.”

Well-placed sources confirmed that third parties are free to make new offers to InterOil, given the expiry of the exclusivity clause.

ExxonMobil’s requirements are well documented, and major terms have already been agreed with InterOil for ExxonMobil to buy 4.6 trillion cubic feet of gas from the Elk-Antelope field to be used as feedstock for another train at ExxonMobil’s PNG LNG project. Sources said Exxon­Mobil is keen to close the deal as soon as possible, given the end of the exclusivity period and InterOil being receptive to other offers.

Shell’s motivations are also LNG driven, with the company said to be keen on operating either a new floating LNG project in PNG or an onshore scheme in Western Province near the Elk-Antelope fields.

InterOil said earlier this month that it wants to be a non-operating owner of an LNG project through the monetisation of its remaining resources at Elk-Antelope and the Triceratops discovery.

Shell has the backing of PNG Petroleum & Energy Minister William Duma who, according to local media reports, is concerned about ExxonMobil having a monopoly.

It was also reported that leaders in Western Province are being urged to pressure InterOil into processing Elk-Antelope gas in their province and not in Port Moresby at ExxonMobil’s LNG site.

Sources said this intriguing saga could take another turn if ExxonMobil closes a deal with InterOil in which case Shell could contemplate a takeover of the Canadian producer.

If ExxonMobil is successful, it looks more likely that Elk-Antelope will underpin the third train at PNG LNG following revelations by project co-owner Oil Search that resources such as P’nyang and Juha North and the Hides expansion are still two years away from being ready for a final investment decision.

“We await with interest the outcome of discussions between ExxonMobil and InterOil regarding the potential purchase by ExxonMobil of an interest in the Elk and Antelope fields in PRL 15,” said Oil Search managing director Peter Botten.

“Depending on the terms of the ExxonMobil deal, these discussions may potentially provide Oil Search with the opportunity to participate in the development of a further LNG train in PNG.”